Economy Growth Assignment Help
Economy Growth Assignment Help When the income of workers increases, it gives them an ability to save more and also spend more. This increased purchasing power of the workers contributes to more consumption in the economy in general. An increase in consumption is basically an increase in demand for goods and services by the workers. AN increase in demand will lead to an increase in the prices of commodities which would lead to some inflation and lead to the growth of the economy. If the economy is judged by the per capita income, then the trade unions have helped in the expanding the economy by fighting for better pays for the workers.
Product of a country
If the economy is judged by the gross domestic product of all the goods and services produced in the country, then the increase in wages due to unions and the increased production and consumption in the country also helps expand the economy. Any which way you look, the economy is benefitted by the activism of the trade unions.
There is also a flip side to the theory above. The activism of trade unions surely helps drive the economy better by demand of better pays for the workers. But, when the union activism takes an uglier turn where in it starts to stifle the growth of the industry in general, then the whole impact of the unions is reversed.
Investment capitalists in the country
In some cases, due to over activism of the unions and the power struggle, a lot of investment capitalists in the country do not forage into building industries when they do have the resources to do so. This is because they fear the pressure and the problems being created by the unions once they have invested substantial amount of capital which they have recover back. This stifles the capital investment in the country which contracts the economy and drives investors back.
This impacts the economic activity in the country which would lead to a deflationary scenario eventually impacting the industries in a negative manner and leading to a situation where in the supply outstrips the demand due to lower consumption. In effect, the over activism of the unions actually works against the workers in the longer run due to the politics being played out for the shorter run advantages.
In conclusion, we can see that the emergence of the trade unions and their mainstreaming as a part and parcel of the working class population has had multiple effects on the workers, organizations, industries and the economy along with the society in general.
Economy Growth Assignment Help
Trade unions have been responsible for a lot of good for the working class which has given them better pay and better say in the way that the organizations take care of their working environments. This is true not just in specific industries, but across industries and across nations. The main advantages can be seen in the way that the life of the working has improved owing to these better conditions of work. This has led to betterment of the working class in more ways than one. On the flipside, the emergence of the trade unions has also caused a lot of heart burn amongst the capitalist block who own the industries.
The main idea behind a trade union is communalist where in the demand to redistribute income better is the main argument and demand being put forward by the unions to the management. This leaves less money amongst the investors who have put in their money into the organization. The trade unions have also helped the economy grow over time. The emergence of the unions have bought forth the idea of inclusive growth and better labour laws which aim to standardise practises across countries so that workers get paid at par for what they do.
One of the other aspects of the trade union is that they have been politicised across the world which has given them even better platforms at the national and international level to unite amongst unions and bring together changes which seek to improve the lives of the workers across the world whilst also keeping in mind that businesses need to generate profit at the end of day to remain open. Order Now.
- Bryson, A. and Gomez, R. (2003), Why Have Workers Stopped Joining Unions?, Centre for Economic Performance, London.
- Fairbrother, P. (1996), “Workplace trade unionism in the state sector”, in Ackers, P., Smith, C. and Smith, P. (Eds), The New Workplace and Trade Unionism, Routledge, London, pp. 110?48
- Fairbrother, P. and Yates, C.A. (2003), “Unions in crisis, unions in renewal?”, in Fairbrother, P. And Yates, C.A.B. (Eds), Trade Unions in Renewal: A Comparative Study, Routledge, London, pp. 1?32.
- Gall, G. (Ed.) (2009a), The Future of Union Organising: Building for Tomorrow, Palgrave Macmillan, New York, NY.
Gall, G. (Ed.) (2009b), Union Revitalisation in Advanced Economies: Assessing the Contribution of Union Organising, Palgrave Macmillan, New York, NY.